Agri Commodity Update (18th-Dec-2017)
Fundamental Aspect:
Chana futures prices witnessed a vertical crash in last couple of week due to weak physical demand on improved sowing progress and higher stocks in the country due to record imports. As per government data, India imported about 4.78 lakh tonnes of chana during April-Sep, up by 430% compared the last year imports. As per government sowing data, area under the chana crop across the country was up 10.25% on year at 89.6 lakh ha as on last week. The NCDEX have imposed a special margin of 5% on the sell side in all running contract and yet to be launched chana contracts seems unable to support its prices.
Cotton future prices continued to trader higher in last few trading session tracking lower arrivals and expectation of fall in domestic output due to pink bollworm attacks in some states. Moreover, higher bonus in Gujarat and increase in consumption by the mills is also supporting prices.
As per Cotton Advisory Board, demand from textile mills is likely to be 315 lakh bales this season as against 288.86 lakh bales last season, while exports might go up to 67 lakh bales as against 58.21 lakh bales last season. ICE cotton futures jumped near-nine month high, boosted by a supportive U.S. export sales report. As per USDA, export Sales report showed 259,661 RB in old crop upland cotton sales, a jump of 39.17% over last week but down 16.69% from last year. Exports of 166,600 running bales were down 33% from the previous week, but up 24% from the prior 4-week average.
Technical Aspect (Jan)
Turmeric (Apr)
Our buy call from 7400—7584 has proven great
Now what to expect?
Support seen at 7350 and Resistance is 7650.
Rally likely to continue till 7650.Break and sustain above 7650 will take it towards 7740—7850 and then 8000++ mark in near term.
Fresh selling only can be seen only close below 7350 on closing basis.
Trade with levels only.
Jeera
Support seen at 21100 and Resistance is at 21650--22050.
Looks weak on Chart. Sell on rise till 21650 which will take it towards 21300—21050 and then 20800 mark in near term.
Fresh Buying can be seen on close above 22050 mark on closing basis.
Trade with levels only.
Castor Seed
Support at 4450 and Resistance at 4560.
Looks weak on chart. Sell on every rise till 4560.Break and sustain below 4450 will take it towards 4410—4360 and then 4250 mark in near term.
Fresh buying can be initiated above 4560 mark on closing basis.
Trade with levels only.
Guarseed
Support is at 3800 and Resistance is 3920.
Looks weak on chart and likely to touch 3800 .Break and sustain below 3800 will take it towards 3750—3720 and then 3650 mark in near term else could touch its resistance of 3920 mark.
Hurdle and stop loss will remain at 3920 mark on closing basis.
Trade with levels only.
Chana
Support is 3800 and Resistance is 4050.
We expect bottom out here. Likely to take “U” TURN here towards 4050. Break and sustain 4050 will take it towards 4130—4180 and then 4250+ mark in near term. Support will remain at 3800.
Take cautionary approach at lower levels.
Trade with levels only
RM Seed
Support seen at 3930 and resistance is at 4050.
Looks weak on chart. Sell on every rise till 4050 and likely to touch 3930. Break and close below 3930 will take it towards 3870—3830 and then 3750 mark in near term.
Fresh buying can be initiated above 4050 mark on closing basis.
Trade with levels only.
Soybean
Support seen at 2980 and Resistance is 3080
Sharp recovery noticed from lower levels and likely to touch 3080. Buy and accumulate more on decline. Break and sustain above 3080 will take it towards 3140—3220 and then 3270++ mark in coming days.
Fresh selling can be seen on close below 2980 mark on closing basis.
Trade with levels only.
CPO
Support seen at 556 while Resistance is 568.
Looks positive on chart. Buy and accumulate more on decline and its likely to touch 565 soon. Break and sustain above 568 will see a new bullish era in the near term.
Support and stop loss will remain at below 556 mark on closing basis.
Trade with levels only.
More will update soon!!!
